It is not only the stock markets that are showing their volatile side this year. Following the recent rise in interest rates, the bond markets are also down by double digits. So it's high time to take a closer look at this asset class in the latest Aquila Focus. Nicolas Peter, Head Investments & Banking Aquila AG, is joined by Patrik Kauffmann, Portfolio Manager at Aquila Asset Management AG.

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Jerome Powell’s speech was crystal-clear and markets are reacting.

Over the past few weeks, the stock markets have been on the rise again for the first time. Is this a good reason to rethink your equity allocation, or is it still too early? Nicolas Peter, Head Investments & Banking Aquila AG, explains the current situation on the financial markets.

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A difficult first half-year is over. Practically all asset classes show a negative performance in the sixmonths to end-June. Central banks face tough policy decisions, the effects of which could be troublesome for capital markets.

A difficult first half-year is over. Practically all asset classes show a negative performance in the sixmonths to end-June. Central banks face tough policy decisions, the effects of which could be troublesome for capital markets.

Nicolas Peter, Head of Banking & Investments, looks back at the first half of 2022 in the latest Aquila Focus and explains Aquila's tactical investment strategy for the coming weeks.

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While the probability of a recession is increasing we don’t think this will occur until at least next year.
Growth momentum continues to weaken, but only slightly. There are no signs as yet of any weakening in the labor market.
Inflation will remain well above central banks’ target levels for longer, becoming a burden for companies.
In the face of high inflation central banks are increasingly prioritizing their mandate of price stability and are raising key interest rates sharply.
The ECB is working on a new package to support peripheral Eurozone countries.
Interest rate hikes by the Fed and other central banks have made the bond markets nervous.
However, the likely rise in interest rates has now, in our opinion, been sufficiently priced into yield curves.
The mixture of high inflation, rising interest rates and a possible recession is a toxic environment for the stock markets.
The USD is performing inconsistently but gold remains resilient.

The far-reaching changes in the monetary policy of some major central banks have not left independent asset managers in Switzerland unscathed. They have significantly lowered their expectations for the next three months.

While the Fed raised rates aggressively in line with its previous communication to markets, the SNB surprised with a 0.5% rate hike. And the ECB is still looking for a solution to its Gordian knot – the fragmentation under pressure of markets within the Eurozone.

Was last week's stock market reaction a trend reversal or merely a bear market rally? In the new episode of Aquila Focus, Nicolas Peter, Head of Investments, identifies three reasons for the current easing in the financial markets and provides an outlook.

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The combination of a tighter monetary policy by the U.S. Federal Reserve and sales in U.S. government bonds from Japan are increasing the pressure on U.S. interest rates. Effects on the stock markets cannot be ruled out.

The rise in bond yields continues unabated, but the pressure should slowly ease. In the current issue of Aquila Focus, Nicolas Peter, Head of Investments, explains the positioning and looks at the reporting of US companies.

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